OpenAI and Anthropic are no longer content with supplying powerful foundation models. They are now building dedicated AI service arms and ventures to help enterprises deploy, integrate, and scale AI in real-world operations. For the Indian IT sector which is worth $280+ billion — a cornerstone of global technology services — this shift represents both a serious competitive challenge and a significant strategic opportunity.
It validates the critical importance of the “last mile” in AI transformation while pressuring traditional delivery models.
In early May 2026, Anthropic launched a standalone AI services company, backed by substantial funding from Blackstone, Hellman & Friedman, Goldman Sachs, and others. This venture embeds Anthropic engineers directly into client organisations — particularly mid-market and private equity-backed firms — to design and manage custom Claude-powered solutions tailored to specific business workflows. The focus is on outcomes, not just technology deployment.
OpenAI is advancing a similar strategy through a well-capitalised joint venture, “The Deployment Company,” targeting up to $4 billion in funding from investors including TPG, Bain Capital, and Brookfield.
It aims to acquire specialised AI services capabilities and deploy teams of “Forward Deployed Engineers” for complex, high-touch implementations. Engagements often begin at multi-million-dollar levels, emphasising measurable business impact, integration with legacy systems, and full operational support.
These initiatives draw inspiration from proven models such as Palantir’s hands-on deployment approach — controlling the journey from model to measurable results.
Impact on the Indian IT Sector
India’s leading IT services firms — TCS, Infosys, Wipro, HCLTech, and others — have long excelled through large-scale offshore delivery, systems integration, and cost-effective execution. This model powered decades of strong growth. However, when the creators of frontier AI models themselves enter the services arena, it directly challenges high-margin areas such as digital transformation, application development, and ongoing managed services.
Key Challenges:
- Accelerated automation of coding, testing, data processing, and routine tasks could reduce demand for large teams and compress traditional time-and-materials contracts.
- Outcome-based pricing and faster implementation cycles may pressure margins and shift the staffing model toward smaller, highly skilled AI-native teams.
- Increased competition for enterprise transformation budgets, especially in complex integrations and change management.
The global market for AI adoption remains in its early stages. Most enterprises still struggle with legacy infrastructure, data governance, regulatory compliance, security, and organisational change. This “last mile” challenge is enormous — and it aligns closely with the core strengths of Indian IT providers: deep domain expertise, proven large-scale execution, and trusted long-term client relationships.
Leading Indian IT firms are already partnering strategically. TCS collaborates with OpenAI, while Infosys works with Anthropic on agentic AI solutions for regulated industries. These alliances allow them to combine cutting-edge models with India’s execution capabilities, creating powerful end-to-end offerings.
In the short term, expect continued market volatility, margin pressures in legacy contracts, and moderated hiring for traditional roles as the industry adjusts. Over the medium to long term, this development is likely net positive for adaptable players. The overall addressable market for AI services — including integration, governance, industry-specific solutions, and sustained operations — is expanding rapidly. Companies that successfully pivot to higher-value work, boost productivity per employee, win outcome-based deals, and deepen partnerships with model providers will capture disproportionate growth.
India’s vast engineering talent pool and expanding Global Capability Centres provide a strong foundation to support these transformations and even export specialised AI services globally.
OpenAI and Anthropic’s entry into services does not diminish the importance of expert delivery — it highlights how indispensable high-quality implementation, contextual understanding, and reliable execution remain in the AI era.
For the global IT industry, and particularly for Indian providers with their unmatched scale and delivery maturity, the coming years call for agility, bold reskilling, accelerated internal AI adoption, and stronger ecosystem partnerships. Those who treat frontier model providers as powerful allies rather than pure rivals — while doubling down on their unique execution strengths — will be best positioned to lead the next chapter of technology services.
The AI revolution is not eliminating the need for services. It is elevating and redefining them. The Indian IT sector, with its proven resilience and global track record, stands ready to shape — and benefit from — this transformation, provided it moves with speed and strategic clarity.
Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.